The Hindu Business Line : Doha Bank to pick up stake in Indian banks

Chennai, May 23 Doha Bank is gearing up for a big splash in India—it intends to pick up stakes in Indian banks, strengthen its recently-acquired stock and commodity broking company, set up a non-banking finance company, an asset management company and get into non-life insurance business.

“We have a cash surplus of $800 million,” says Mr Raghavan Seetharaman, Group CEO, Doha Bank, adding “we are looking at acquisitions globally.”

Doha Bank is the third largest bank in Qatar with financial assets of $10 billion and equity base of $1 billion. Last year, it acquired 49 per cent in a Kochi-based broking company and has since changed its name to Doha Brokerage and Financial Services Ltd. The company has a network of 140 branches, a client-base of 42,000 and daily turnover of around Rs 250 crore. The plan is to strengthen this company with further capital infusion and client acquisition. Doha Bank has an option to raise its stake to 80 per cent and will exercise this option over time.

Doha Bank will leverage its contacts in the developed countries to expand its client base in India, Mr Seetharaman told Business Line. “For the fund in Wall Street we will be the gateway into India,” he said.

Over time, Doha Brokerage and Financial Services will be listed on the Indian stock exchanges, he said.

Only last month Doha Bank received licence for starting a non-banking finance company in India. Mr Seetharaman expects the company to begin operations within four months, with a fund base of about $200 million (Rs 900 crore). For starters, the NBFC will focus on giving vehicle loans and mortgages and will eventually get into all types of retail lending. Mr Seetharaman does not rule out building the NBFC’s asset book by acquiring portfolios.

Doha Bank applied for a bank licence in 2005. The application is pending with the RBI. However, Mr Seetharaman said that Doha Bank will start picking up equity stakes in Indian banks, up to the permissible level of 5 per cent, with a hope for more when regulations allow.

Doha Bank Assurance, a non-life insurance company in Qatar, is interested in joining hands with an Indian company for operations in India.

Doha Bank is keen on acquisitions in India (globally too) in all the areas of financial services, Mr Seetharaman said. Asked if the bank has appointed a consultant for scanning the Indian market for acquisitions, he said, “not yet”.

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